Construction disputes rise in value over 60 percent to $51million

Gary Kitt

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"This is the second consecutive year in which values have increased with the average now reaching $51million."

Disputes relating to major global construction projects increased significantly in value to, on average, $51million in 2014. This represents the second consecutive year in which values have increased with the average now reaching $51million, up almost $19million on 2013. Significantly, the number of projects going into dispute is also expected to rise during 2015, with low margins agreed during the economic downturn and labor shortages in some markets likely to prove a catalyst for disputes.

"While many of these situations are resolved behind closed doors, the time and expense involved can create huge problems."

This year’s report, Global Construction Disputes: The Higher the Stakes, the Bigger the Risk, is our fifth annual study into the duration, value, common causes and methods of resolution of construction disputes across the globe. The report found that construction dispute values were the highest in Asia at $85.6milllion where values more than doubled, closely followed by the Middle East at $76.7million. However, in the North America and the UK, dispute values dipped to $29.6 million and $27 million respectively